As the length of the unexpired term of a Bognor Regis residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Bognor Regis will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bognor Regis with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Using our service gives you increased control over the value of your Bognor Regis leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a conversion flat in Bognor Regis on the market with a lease of fraction over 61 years outstanding. Alex informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. R Carter , who bought a purpose-built flat in Bognor Regis in April 2002. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Bognor Regis with a long lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease expired on 15 November 2098. Given that there were 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
In 2014 we were called by Mr Blake Campbell who, having purchased a studio apartment in Bognor Regis in April 2002. The question was if we could estimate the premium would be for a ninety year lease extension. Similar homes in Bognor Regis with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed annually. The lease ran out in 2087. Taking into account 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including fees.